Universal Security Instruments Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Universal Security Instruments Inc. filed its Q3 2023 10-Q report, detailing financial data and product information.</b>

AI Summary

UNIVERSAL SECURITY INSTRUMENTS INC (UUU) filed a Quarterly Report (10-Q) with the SEC on February 20, 2024. The filing covers Universal Security Instruments Inc.'s 10-Q report for the period ending December 31, 2023. The company's fiscal year ends on March 31st. The filing includes data related to Retained Earnings, Additional Paid-In Capital, and Common Stock as of various dates in 2022 and 2023. Specific product categories mentioned include 'Products Acquired From Eyston Company Ltd.' and 'GFCIS And Ventilation Fans'. Customer concentration risk is noted for 'TwoCustomer' and 'ThreeCustomer' for the period October 1, 2023, to December 31, 2023.

Why It Matters

For investors and stakeholders tracking UNIVERSAL SECURITY INSTRUMENTS INC, this filing contains several important signals. This 10-Q filing provides a snapshot of Universal Security Instruments Inc.'s financial health and operational details for the third quarter of fiscal year 2023. Understanding the customer concentration risk and specific product lines is crucial for assessing the company's revenue stability and market position.

Risk Assessment

Risk Level: — UNIVERSAL SECURITY INSTRUMENTS INC shows moderate risk based on this filing. The company faces medium risk due to noted customer concentration, where revenue from a few customers could significantly impact financial results if lost.

Analyst Insight

Investors should monitor customer relationships and revenue diversification strategies to gauge future performance.

Key Numbers

• 2023-12-31 — Period of Report (Fiscal year end)
• 03-31 — Fiscal Year End (Company fiscal year end)
• Q3 — Quarter (Reporting quarter)

Key Players & Entities

• UNIVERSAL SECURITY INSTRUMENTS INC (company) — Filer name
• 2023-12-31 (date) — Period of report
• 2024-02-20 (date) — Filed as of date
• MD (location) — State of incorporation and business address state
• OWINGS MILLS (location) — Business address city
• UUU (ticker) — Ticker symbol

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: Revenue is subject to concentration risk due to reliance on a small number of customers, specifically 'TwoCustomer' and 'ThreeCustomer'.

Industry Context

Universal Security Instruments Inc. operates in the wholesale of electronic parts and equipment sector.

Regulatory Implications

The filing is a 10-Q, a quarterly report required by the SEC for public companies to provide updates on their financial condition.

What Investors Should Do

1. Analyze the specific financial data presented for Retained Earnings, Additional Paid-In Capital, and Common Stock for 2022 and 2023.
2. Investigate the product lines 'Products Acquired From Eyston Company Ltd.' and 'GFCIS And Ventilation Fans' for revenue contribution and growth potential.
3. Assess the impact of customer concentration risk from 'TwoCustomer' and 'ThreeCustomer' on future revenue streams.

Year-Over-Year Comparison

This is the initial analysis of the 10-Q filing for the period ending December 31, 2023. Comparative data from previous filings is not available in this extract.

Filing Documents

• uuu-20231231x10q.htm (10-Q) — 649KB
• uuu-20231231xex31d1.htm (EX-31.1) — 11KB
• uuu-20231231xex31d2.htm (EX-31.2) — 11KB
• uuu-20231231xex32d1.htm (EX-32.1) — 7KB
• uuu-20231231xex99d1.htm (EX-99.1) — 108KB
• uuu-20231231xex99d1001.jpg (GRAPHIC) — 7KB
• uuu-20231231xex99d1002.jpg (GRAPHIC) — 3KB
• 0001410578-24-000064.txt (&nbsp;) — 2474KB
• uuu-20231231.xsd (EX-101.SCH) — 22KB
• uuu-20231231_cal.xml (EX-101.CAL) — 25KB
• uuu-20231231_def.xml (EX-101.DEF) — 48KB
• uuu-20231231_lab.xml (EX-101.LAB) — 182KB
• uuu-20231231_pre.xml (EX-101.PRE) — 112KB
• uuu-20231231x10q_htm.xml (XML) — 203KB

- Financial Information

Part I - Financial Information Page Item 1. Condensed Consolidated Financial Statements: Condensed Consolidated Balance Sheets at December 31, 2023 (unaudited) and March 31, 2023 3 Condensed Consolidated Statements of Income for the Three Months Ended December 31, 2023, and 2022 (unaudited) 4 Condensed Consolidated Statements of Income for the Nine Months Ended December 31, 2023, and 2022 (unaudited) 5 Condensed Consolidated Statements of Shareholders' Equity for the Nine Months Ended December 31, 2023, (unaudited) 6 Condensed Consolidated Statements of Shareholders' Equity for the Nine Months Ended December 31, 2022, (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2023, and 2022 (unaudited) 8 Notes to Condensed Consolidated Financial Statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 4.

Controls and Procedures

Controls and Procedures 16

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 17 Item 5. Other Information 17 Item 6. Exhibits 17

Signatures

Signatures 19 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNIVERSAL SECURITY INSTRUMENTS, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (unaudited) (audited) December 31, 2023 March 31, 2023 CURRENT ASSETS Cash $ 39,178 $ 151,502 Accounts receivable: Trade, less provision for credit losses of $ 157,012 646,920 414,689 Other receivables 5,000 305,889 651,920 720,578 Amount due from factor 2,701,207 2,944,370 Inventories – finished goods 4,880,508 4,063,632 Prepaid expenses 399,318 165,378 TOTAL CURRENT ASSETS 8,672,131 8,045,460 INTANGIBLE ASSETS - NET 32,419 35,773 PROPERTY AND EQUIPMENT – NET 199,404 318,641 TOTAL ASSETS $ 8,903,954 $ 8,399,874 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Line of credit - factor $ 1,121,064 $ 1,459,350 Short-term portion of operating lease liability 156,851 151,230 Accounts payable - trade 1,361,366 293,465 Accounts payable – Eyston Company Ltd. 517,624 655,000 Accrued liabilities: Accrued payroll and employee benefits 155,124 125,415 Accrued commissions and other 98,938 184,525 TOTAL CURRENT LIABILITIES 3,410,967 2,868,985 LONG-TERM PORTION OF OPERATING LEASE LIABILITY 53,289 172,072 TOTAL LONG-TERM LIABILITIES 53,289 172,072 COMMITMENTS AND CONTINGENCIES — — SHAREHOLDERS' EQUITY Common stock, $ .01 par value per share; authorized 20,000,000 shares; 2,312,887 shares issued and outstanding at December 31, 2023 and March 31, 2023 23,129 23,129 Additional paid-in capital 12,885,841 12,885,841 Accumulated Deficit ( 7,469,272 ) ( 7,550,153 ) TOTAL SHAREHOLDERS' EQUITY 5,439,698 5,358,817 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,903,954 $ 8,399,874 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents UNIVERSAL SECURITY INSTRUMENTS, INC., AND SUBSIDI

. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERAT

ITEM 2 . MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERAT

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View this 10-Q filing on SEC EDGAR